Authored by Sara Weathers
Cyber insurance is essential for law firms, but having a policy alone is insufficient. Your coverage needs to align with your firm's operations, the information you manage, and your specific risks.
Every Firm's Cyber Risk Is Different
A small firm with few employees faces different risks than a growing plaintiff firm managing high-value settlements and significant sensitive client data.
Consider your firm's exposure to:
- Client data: Medical records, financial information, and personally identifiable information
- Financial transactions: Settlement payments and wire transfers increase fraud risk
- Remote work: Employees accessing systems and files outside the office may introduce new vulnerabilities
- Third-party vendors: Cloud providers, IT companies, and other vendors may create extra points of exposure
What Should Your Policy Address?
When reviewing cyber coverage, consider more than the premium. Confirm your policy protects against risks like data breaches, ransomware, business interruption, and social engineering or wire fraud.
Understand your policy’s limits, exclusions, deductibles, and any cybersecurity requirements your insurer expects your firm to meet.
Review Coverage as Your Firm Changes
Your cyber risk evolves as your firm grows, adopts new technology, adds employees, or manages larger transactions. A policy that was suitable years ago may not offer adequate protection today.
Cyber insurance should reflect your firm’s specific risks, not a generic approach. Regularly review your coverage with an insurance professional to identify gaps and ensure your policy adapts as your firm changes.
